OMTEX CLASSES: BILLS OF EXCHANGE BOARD PROBLEMS: FROM 2014 TO 2018

BILLS OF EXCHANGE BOARD PROBLEMS: FROM 2014 TO 2018

BILLS OF EXCHANGE BOARD PROBLEMS:

JULY 2018: On 7th March, 2016, Ram draws a bill on Rohit for Rs. 8000 at three months. Rohit accepts it and return it to Ram. Ram then sends the bill to his bank for collection. On due date Rohit finds himself unable to make the payment of the bill and requests Ram to renew it. Ram agreed on the condition that Rohit should pay Rs. 5000 in cash and should accept a new bill for the balance at 2 months with interest Rs. 200. These arrangements were carried through. Before due date Rohit was declared insolvent and Rs. 1500 could be recovered from his private estate as first and final dividend. Give Journal entries in the books of Ram.

March 2018: Sayali sold goods on credit to Manali for Rs. 40000. Sayali draws a bill on Manali for 4 months for the amount due. Manali accepted the bill and returned it to Sayali. After a month, Sayali discounted the bill with her bank at 12% p.a. On the due date, bank informed that the bill is dishonored and bank paid the noting charges Rs. 300. Manali requested Sayali to renew the bill. Sayali agreed on conditions that Manali should pay Rs. 20000 in cash along with noting charges and accept a new bill for the balance amount with interest at 15% p.a. for 3 months. These arrangements were carried through. Before the due date Manali was declared insolvent and only 40% of the amount could be recovered from her private estate as final dividend. Give journal entries in the books of Sayali.

JULY 2017: Apate draws a bill on Mapate for Rs. 8000 at 3 months. Mapate accepted the same and sent to Apate. Apate sent the same bill to his bank for collection. On due date Mapate found himself unable to make payment of the bill, and requested Apate to renew it. Apate agreed on the condition that Mapate should pay Rs. 2000 and interest Rs. 200 on the remaining balance in cash and accept a fresh bill for the balance for two months. These agreements were carried through. On due date of new bill it was duly honoured. Pass journal entries and Mapate’s account in the books of Apate.

MARCH 2017: Raja made sales of goods worth Rs. 40000 to Pradhan and received a part payment of Rs. 10000. On the same date, Raja drew on Pradhan a three months bill for Rs. 30000, received the acceptance on the bill and sent the bill to the bank for collection immediately. However, on the due date the bill was dishonoured due to Pradhan’s insolvency and only 50% of the amount due could be recovered from his private estate as the first and final dividend. Give journal entries and Pradhan’s Account in the books of Raja.  

JULY 2016: Journalise the following transactions in the books of Jaydeep. [10]
(A) Arvind renews his acceptance of Jaydeep of Rs. 7,000 with interest Rs. 500 for two months.
(B) Bank informed Jaydeep that Mahadev’s acceptance of Rs. 4,000 which was discounted and
dishonoured. Bank charged noting charges Rs. 80.
(C) Hanumant informed Jaydeep that Kazi’s acceptance for Rs. 7,000 endorsed to Hanumant has been dishonoured, noting charges Rs. 85.
(D) Datta honoured his acceptance of Rs. 4,900, which was sent to bank for collection. Bank debited Rs. 100 for bank charges.
(E) Radhika retired her acceptance to Jaydeep of Rs. 9,000 by paying Rs. 8,700.

MARCH 2016: Raja of Nagpur draws a bill on Pradhan of Bhandara for Rs. 6,000 at 3 months. Pradhan accepted and returned it to Raja. Raja then sent the bill to bank for collection.
On due date, Pradhan finds himself unable to make payment of the bill and requests Raja to renew it. Raja accepted a proposal on the condition that, Pradhan should pay Rs. 1,000 on account along with interest Rs. 250 in cash and should accept new bill for the balance at 2 months. These arrangements were carried through. Afterwards, one month before due date of new bill Pradhan retired his acceptance by paying Rs. 4,850. Give Journal entries in the books of Raja of Nagpur.  [10]

JULY 2015: Sukhdev sold goods to Namdev worth Rs. 30000 on 1st March 2013. Namdev accepted a bill for Three months, drawn by Sukhdev on 1st March 2013. Namdev requested on 21st May 2013 to Sukhdev to receive Rs. 10000 and draw a new bill for the balance for two months. Sukhdev agreed on the condition that interest at 12% p.a. for two months is to be provided. Sukhdev then drew a new bill for the balance amount plus interest at 12% p.a. for two months. Namdev accepted the new bill. On due date the new bill was honoured.
Give journal entries in the books of Sukhdev.

MARCH 2015: Ramesh sold goods to Ganesh on credit for Rs. 20,000. Ganesh accepted a bill of Rs. 20,000 for 3 months, drawn by Ramesh on the same date.
On the due date Ganesh dishonoured his acceptance. Then Ganesh approached Ramesh and requested for renewal of the bill. Ramesh agreed on the condition that Ganesh should pay Rs. 10,000 in cash and accept a new bill for 2 months for the balance amount plus interest Rs. 200.
The new bill was drawn by Ramesh and accepted by Ganesh. However one month before the due date Ganesh retired his acceptance by paying Rs. 9,900. Pass necessary Journal Entries in the books Ramesh.

OCTOBER 2014: On 14th May, 2012 Rohit sold goods on credit to Devidas for Rs. 30,000 on the same date Rohit draws a bill on Devidas for Rs. 30,000 at 4 months. Devidas accepted it an returned to Rohit. On 17th June, 2012 rohit discounted the bill with his bank @ 10% p.a. On due date Devidas finds himself unable to make payment of the bill and requests Rohit to renew it. Rohit accepted the proposal on the condition that Devidas should pay Rs. 10,000 on account along with interest Rs. 500 in cash and should accept a new bill for the balance at 2 months. These arrangements were carried through. Give Journal Entries in the Books of Rohit.

MARCH 2014: Journalise the following transactions in the books of Kedarnath:
1. Badrinath informs Kedarnath that Aloknath's Acceptance of Rs. 16,000 endorsed to Badrinath has been dishonoured and noting charges amounted to Rs. 500.
2. Somnath renews his acceptance of Rs. 14,400 to Kedarnath by paying cash Rs. 4,400 and accepting a new bill for 2 months for the balance plus interest @ 12% p.a.
3. Vishwanath retired his acceptance for Rs. 10,500 to Kedarnath by paying in cash Rs. 10,250

4. Recovered only 50% of the amount due from his private estate of Ramnath, who declared as insolvent, against his bill of Rs. 12,500.